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Budget cuts: Social Services and education take two-thirds of all councils’ money

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Pembrokeshire County Council: Pandemic has forced through change to digital services

How will local government services change?

THE FUNDING pressures on local government over the last decade have been a catalyst for change in local service delivery. Increasing costs and lower revenue for local authorities means some services have reduced or are being run differently.The pandemic put significant new demands on local government, exacerbating existing pressures. The future of local government services is uncertain. How it responds to the challenges will shape those services for years to come.
The shape of local authority services has changed significantly over the last decade.

Overall local authority spending has decreased by around 7% since 2013-14 (in real terms). In contrast, expenditure on social services has increased by over 10%. Spending in most other service areas has been cut, including in education.


Planning and economic development services have been hit particularly hard, as have libraries, culture, heritage, sport and recreation services.

WHERE THE MONEY GOES

Together, social services and education made up over two-thirds of total expenditure on services by the 22 local authorities in 2019-20.


But while social services have been protected from the most severe spending reductions, this won’t be enough to ensure its sustainability for the future


A 2017 report by Wales Public Services 2025 found that spending through local authorities on social care for the over 65s is not keeping pace with the growth in the population of older people. Spending may need to have increased by at least £129 million (23%) between 2015-16 and 2020-21 to get back to the equivalent spend per head in 2009-10.


The ONS estimates that, between 2021 and 2031, the population of Wales will grow by just over 60,000 (1.9%). Within that population growth, there’s a projected increase in the proportion of older people. The population of over 65s is due to increase by around 119,000 (17.5%).


Wales Fiscal Analysis notes that, while future demand for care can’t simply be linked to growth in older populations, projected growth in older people with complex care needs is highly likely to mean increased pressure on care services.


It details that the number of older adults living with severe dementia is expected to double to 53,700 by 2040.
The Inter-Ministerial Group on paying for social care estimated that in a ‘high-cost’ scenario, between 2019-20 and 2022-23, the net costs of social care could increase by almost £400 million.
Wales Fiscal Analysis projects that by 2025-26, social services could account for 55% of all local government spending pressures, with school pressures accounting for a further 21%.

INCREASED RELIANCE ON COUNCIL TAX?

Where local authorities get the money to spend on services has also started to shift. There’s been a reduction in grant funding to local authorities over the period 2013-14 to 2019-20, some of which has been mitigated by local taxes. Grant funding still makes up most local authority income.


The amount to be collected from council taxpayers (excluding council tax benefit/reduction scheme funding) was up by almost 30% over the same period.


The overall increase reflects annual increases in council tax paid by residents over the period. Average Band D council tax (excluding the police element) increasED in real terms by £186.


However, local authorities have consistently warned that raising council tax is not enough to fill future funding gaps

Following the UK Budget 2021, Wales Fiscal Analysis notes that “the UK government’s medium-term spending plans make for a more austere outlook for the Welsh budget and Welsh public services” and outlines the possibility of a return to austerity for parts of the Welsh budget.


The financial impact of the pandemic on local government is likely to be felt for many years.
Audit Wales notes that, even in local authorities generating a budget surplus in 2018-19, some had significant overspends in demand-led services like social services. It suggests those pressures are likely to intensify because of the pandemic.

TRANSFORMINGPUBLIC SERVICES:

Local government has embarked on a journey to transform how it delivers services.
Local authorities are thinking differently about improving services for users while reducing the cost of running them.


An example of this is one-stop-shops or ‘hubs’. These hubs host multiple council services under one roof, such as libraries, money advice and adult learning services.

One of the most significant aspects of the transformation programme is to make better use of technology and digital tools.


The Digital Strategy for Wales, launched in March 2021, sets out a national vision for digital transformation. The Strategy seeks a cultural shift in how public bodies “deliver and modernise services” designed around user needs.
Over the past year, local authority resources have been diverted from some of this transformational work. Anticipated financial savings are now uncertain.
The WLGA recently suggested there’s doubt about when, and indeed if, some of those savings will now happen.

MIND THE GAP

Corporate Joint Committees (CJCs) are bodies designed to enable greater regional working and collaboration in areas like education and transport.


However, questions remain about how these new bodies will operate.

Responses to a recent consultation on CJCs by the previous Welsh Government show there’s still uncertainty about how they’ll function and their associated costs and benefits.


Despite the recent increase in the local government settlement for next year and the substantial funding support in response to the pandemic, significant challenges remain.

Wales Fiscal Analysis suggests that to meet cost pressures over the next few years, spending on local services needs to increase, on average, by 3.4% a year (in cash terms) between 2020-21 and 2025-26.


The WLGA recently reported that core pressures, the financial gap in money coming in, and what’s needed to pay for services could amount to £822 million by 2023-24.

Leaning on local taxation, such as council tax, to support critical services like social care and education won’t stem the demand for and cost of providing those services.

News

MPs back historic move to decriminalise abortion in England and Wales

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MEMBERS of Parliament have voted decisively in favour of changing the law to decriminalise abortion for women in England and Wales.

The amendment, introduced by Labour MP for Gower, Tonia Antoniazzi, will remove the threat of criminal prosecution for women undergoing abortions after the current 24-week limit. Antoniazzi argued passionately that women facing late-term abortions are in “desperate situations” and need “compassion, not criminalisation.”

MPs were allowed a free vote on the issue as a matter of personal conscience, and the measure passed comfortably by 379 votes to 137—a majority of 242.

Currently, abortions in England and Wales are legal up to 24 weeks, with exceptions permitted beyond this period if the woman’s life is at risk or under other specific conditions. Antoniazzi’s amendment to the Crime and Policing Bill ensures that women can no longer face arrest, prosecution, or imprisonment for ending a pregnancy at any stage.

Highlighting her argument in Parliament, Antoniazzi pointed out that nearly all abortions—99%—occur before 20 weeks. She emphasised that the small percentage who undergo late-term abortions are often vulnerable and facing complex personal circumstances.

“Each case represents a profound tragedy enabled by an archaic law,” she said. “This outdated Victorian legislation, created by an all-male parliament, has increasingly been weaponised against vulnerable women and girls.”

Labour MP Stella Creasy urged colleagues to consider broader changes to abortion laws, including repealing the 1861 Act entirely and formally recognising abortion access as a fundamental human right. Despite receiving significant initial backing, Creasy’s amendment did not proceed to a vote following concerns from abortion providers such as the British Pregnancy Advisory Service, who suggested it was not the optimal path to long-term reform.

Meanwhile, a Conservative amendment introduced by shadow health minister Dr Caroline Johnson, proposing to end the practice of allowing abortion medication by post without an in-person consultation, was rejected by MPs, with 379 voting against and 117 in support.

The landmark vote marks a significant step in abortion law reform, removing longstanding criminal penalties and shifting towards a compassionate framework for women’s healthcare.

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News

Welsh Government publishes first Supplementary Budget for 2025-26

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THE WELSH GOVERNMENT has today (June 17) published its First Supplementary Budget for the 2025-26 financial year.

The updated budget reflects adjustments made since the Final Budget was agreed in February and includes several allocations from the Welsh Government’s reserves. It also incorporates changes to baseline funding following UK Government fiscal decisions earlier this year.

According to the written statement issued by the Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, the revised budget is designed to keep public spending aligned with shifting economic conditions and priorities.

The Supplementary Budget outlines how money will be reallocated or drawn down to address emerging pressures or policy changes. It forms part of the normal financial planning process and gives the Senedd an opportunity to scrutinise government decisions taken since the Final Budget.

A debate on the Supplementary Budget has been scheduled for Tuesday, July 8, in the Senedd.

The Welsh Government said the changes ensure financial flexibility while remaining within overall spending limits.

Further details, including the full budget breakdown, are available on the Welsh Government’s website.

Photo caption:
Finance lead: Mark Drakeford MS will present the Supplementary Budget to the Senedd on July 8 (Pic: Herald)

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News

Council begins settlement-by-settlement review of 20mph limits in Pembrokeshire

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Listening exercise complete – local feedback now under review
PEMBROKESHIRE COUNTY COUNCIL has begun a comprehensive review of 20mph speed limits across the county, following a wave of public concern and a major listening exercise.

The review follows widespread concern over the Welsh Government’s blanket 20mph policy, introduced in September 2023. Residents, businesses and community leaders across Pembrokeshire raised concerns that the one-size-fits-all approach fails to account for the county’s rural road network and varying local conditions.

Councillor Rhys Sinnett, Cabinet Member for Residents’ Services, confirmed that the council is now reviewing the feedback on a settlement-by-settlement basis and will contact residents directly in areas where speed limit changes are under consideration.

“Where a speed limit review has been proposed, we will engage directly with local residents before moving to wider consultation and any formal changes,” said Cllr Sinnett.

While the initial public response to the 20mph policy has been mixed, data from police shows a 28% drop in casualties on 20mph and 30mph roads across Wales since the change. In Pembrokeshire, recorded casualties fell from 125 to 89 over the same period.

Although the council is no longer seeking new suggestions, the review process will continue throughout the current financial year. Formal changes to speed limits will be implemented where appropriate via the statutory Traffic Regulation Order (TRO) process.

Meanwhile, the council has also reported a number of 20mph signs being vandalised or removed across the county, with the cost of replacement now exceeding £4,000. Despite this, the reduced limits remain fully enforceable.

The Herald understands that the next steps will include direct communication with residents in affected settlements, followed by formal consultation where required.

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